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(4) What is true regarding the formation of a corporation? a. When a shareholder contributes property and services to a newly formed corporation in exchange for stock and cash, it's tax-free. b. When a shareholder contributes property to an already formed corporation in exchange for stock 75% of the stock of the corporation, it's tax-free. c. When a shareholder contributes property to a newly formed corporation in exchange for stock 75% of the stock of the corporation, it's tax-free. d. When two shareholders contributes property to a newly formed corporation in exchange for stock 100% of the stock of the corporation, it's tax-free. (5) The following is a true statement regarding the formation of a corporation: a. The tax code allows a person or entity to form a corporation tax-free b. The tax code does not allow a person or entity to form a corporation tax-free c. The government wants to tax the formation of a corporation in order to spur the development of business d. The basis that is carried over to the property that now is owned by the corporation is the amount the property can be sold to a third party (6) What is considered income to Company X? a. Gain from the sale of a car that the company owns b. Receipts received for services performed c. Receipts received from the sale of marijuana d. All of the above

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